Phoenix deals: CEOs keep buying back dead firms, only to watch them burn again

A boardroom littered with ash trays and phoenix feathers might sound like a costume party, but it’s actually the latest trend in the City’s corporate resurrection circus.

In a pre‑pack deal, a company that has already declared insolvency is swooped up by the very management that oversaw its collapse, the price tag is dramatically reduced, and creditors are left with a fraction of what they are owed.

The Guardian‑commissioned research shows that these phoenix‑style buy‑outs pay creditors far less than they would receive in a normal insolvency, and the resurrected firms are statistically more likely to collapse again – as if the first fire were just a warm‑up act.

For the executives involved, it’s a bit like hitting the rewind button on a bad haircut – a second chance to try the same style, hoping the market will finally appreciate it. For suppliers and lenders, it feels more like being handed a singed receipt.

The study’s authors warn that the cycle of death, rebirth, and rapid demise could erode confidence in the pre‑pack mechanism, turning the City’s beloved phoenix into a cautionary tale for anyone still believing in corporate immortality.